The international market outlook for Dubai for the next 5 years is very positive.
The country's real gross domestic product (GDP) is expected to grow 3.7 percent this year, higher than the 2.9 percent forecast for 2018 and the 0.8 percent growth achieved in 2017, according to the latest economic outlook figures from the International Monetary Fund (IMF).
The UAE jumped 10 places in the World Bank's Ease of Doing Business ranking to 11th position globally in 2019 from the 21st position last year to lead the Arab world for the sixth consecutive year.
Source: Khaleej Times
Even today, the property prices in Dubai are lesser than other global cities like New York, London, etc. hence, increasing demand for properties and investors have a great scope for growth.
Post 2008 Dubai property bubble investors have been skeptic about investing in Dubai.
But the announcement of Expo 2020 has sparked positivity in the sector. OffPlan property has emerged to be a very lucrative investment. Dubai’s offplan sales made a strong comeback in February.
The market recorded the best performance in February since May last year.
Number of offplan property deals recorded last month: 1,700
Value: Dh2.8 billion
Why Dubai is a better investment destination?
- Subpar Rates: Today one can buy property in the same price range as that of 5 years ago. Now compare this to the inflation on every other commodity. You will realize that the current prices are subpar. This means that properties are now accessible to a larger chunk of the population thereby supplementing the demand.
- Government Efforts: Demand in the real estate field is highly affected by government policies. Strong demand is fueled by a population that is committed to the country. Earlier this year, the government announced that by the end of 2018, it would start giving 10-year residential visas to professionals investing in Dubai. This is a part of the government’s effort to retain the population and inspire confidence for them to invest in the market.
- Awareness: Developers and brokers have learned from every crisis that has hit the market before today. They are now quick to respond to market demand. The new trend of affordability in the Dubai market is a perfect example of this awareness among professionals.
- Expo 2020: 300,000 new jobs are expected to come out of the Expo. This, when compared to the total population, seems to be a huge amount. A total of Dh56.6 billion was allocated to infrastructure development for the Expo by the Government in 2018 alone. Consider any country, growth in infrastructure and population always has always led to a growth in real estate demand.
- Affordable Luxury: Properties in Dubai are far more affordable and come with better amenities if you compare it with another major city. Let us take London for instance.
London: Properties in major suburbs of London, for example, a 1,200 sq.ft. two-bedroom apartment costs around AED 18million with one parking space.
Dubai: The same 1200 sq. ft. apartment with additional amenities like gym, swimming pool, two parking spaces, etc. are offered at Dh900 per sq. ft. So the apartment cost becomes Dh960,000.
That is a difference of AED 17,845,350.
- World-Leading Rental Yields: Dubai offers a world-leading rental yield of 6%.
Below graph denotes rental yields that investors receive from investments in other major cities across the world:
- Tax-Free Regime: Purchasing a property from a developer anywhere in India attracts 12-18% taxes including Stamp Duty, Registration and GST. Dubai properties, on the other hand, only attract 4% DLD transfer charges on any property purchased. Dubai doesn’t levy any taxes on the income generated from these properties.
- Flexible Mortgages available for investors:
Most of us buy a property by availing a home loan. This means that the banks need to be willing to offer loans to more buyers if the market has to grow. In Dubai, most banks have eased the home loan criteria to help investors buy real estate investments. This has led to an increase in demand for homes which has resulted in a rapidly growing real estate market. Further, as a property owner, you can lease your property and divert the rental income towards the repayment of your loan. In this manner, your loan gets taken care of and you stand to benefit from the appreciated value of the property.
The government is expecting around 25 million people to visit UAE during the Expo 2020 period and create around 300,000 jobs. This will have an obvious impact on the Dubai Real Estate Market.
Major companies like Emaar, Damac, Dubai Properties, Meraas have started numerous projects that have attracted a wide range of expats from all over the world. Major Areas like Downtown, Mohammed Bin Rashid City, Emaar South, Dubai Creek Harbour etc. has seen a growth in massive developments.
Some of the popular projects are
- Dubai South
- Dubai Hills Estate
- City Walk
With fifteen years of Dubai real estate experience, Mi Casa Real Estate Brokers has proven success in providing clients with premier customer service, reliability, and efficiency. As one of the fastest growing real estate companies in the UAE, we have sophisticated residential brokers specializing in all of Dubai’s localities.
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